1. What is the "Hedge Fund"
1.1 What is Hedge Fund?
1.1.1 Definition of the "Hedge Fund"
1) What is a hedge fund?
"Hedge fund" is a general, non-legal term that was originally used to describe a type of private and unregistered investment pool that employed sophisticated hedging and arbitrage techniques to trade in the corporate equity markets. Hedge funds have traditionally been limited t
1. What is Hedge Funds?
Definition
"Hedge fund" is a general, non-legal term that was originally used to describe a type of private and unregistered investment pool that employed sophisticated hedging and arbitrage techniques to trade in the corporate equity markets.
Characteristics
A diversified portfolio of uncorrelated funds
May be widely diversified, or sector or geographica
fluctuations will change the value of a contract
before it is settled. Transaction exposure is also called transaction risk.
Briefly, Transaction exposure is negative influence upon Dell Mercosur`s cash flow.
In order to hedge transaction exposure, Dell Mercosur is using forward contracts. Before finding
out how the strategy works, let’s take a look at what forward contract is.
hedging activities
In accordance with its risk management policy, the Company uses derivative instruments, primarily forward exchange contracts, to hedge foreign currency exchange rate risks regarding foreign assets and liabilities. In other words, a foreign branch buys or sells currency forward products about 6 months before expired through the bank for risk aversion. The following table pre
hedging
JP 모건의 문제는 바트화에 대한 투자 규모가 너무 커서 팔고 싶어도 팔 수가 없다는 것이었다. 그래서 다음과 같은 전략 사용.
(1)TRS: 선물+옵션의 형태. 이를 이용하여 JP MORGAN은 바트가 폭락해도 TRS에서 돈을 벌 수 있었다. (PPT 참고)
(2)한국 기업 탐색: 당시 세계화의 열풍이 불고 있던 우리 나라